openHR logo icon
  • 
  • 
  • 
  • 
  • 
    • Login
    • Register

How is PAYE calculated?

PAYE is calculated on taxable remuneration using progressive tax rates, rebates, and medical aid credits (if applicable). Employers use SARS tax tables to determine monthly deductions based on annualised income, subtracting rebates.

Updated at 2025-10-08 10:00:00

Related questions
  • What is Pay As You Earn (PAYE)?
  • Who is required to deduct and pay PAYE?
  • How is PAYE calculated?
  • When and how must PAYE be paid?
  • How do employers register for PAYE?
  • What are the penalties for non-payment or late payment of PAYE?
  • What is the reconciliation process for PAYE?
  • No tax is on the payslip?
  • I missed a payslip from the prior period and already generated an EMP201. What now?
  • Why is a small difference in tax from one month to the next?
Video Guides

  • Getting started
  • Create a company
  • Add an employee
  • Process payslips
  • Submitting an EMP201
More videos
Blog

  • openHR's Most Advanced Payroll & HR Yet
  • 🧾 EMP501 Season: Interim Reconciliati...
  • You Are HR-ing Wrong
  • ⚖️ What Are Your Rights During a Depa...
  • ⚖️ Why openHR is free - and why digni...
More posts